Bonded Title in Arizona

A bonded title lets you register and own a vehicle when you cannot provide complete ownership documentation. In Arizona, the required bond is 1.5× the value of the vehicle as determined by MVD and the title is branded "BONDED" for 3 Years.

1.5× the value of the vehicle as determined by MVD

Bond Amount

Per ARS § 28-2057(B), the bond must equal 'one and one-half times the value of the vehicle as determined by the department.' The official ADOT Bonded Title page restates this as 'one and one half times the value of the vehicle or mobile home.' Form 40-1001 (rev. 07/2025) shows that MVD sets the vehicle's average value using AAMVA/NVITIS data, then multiplies by 1.5 to produce the required bond amount — the MVD officer records 'AAMVA/NVITIS verified and Bond Amount Set' on the application before the applicant purchases the bond. Note that ARS § 28-2057(B) uses the phrase 'value as determined by the department,' not 'fair market value'; the AAMVA/NVITIS average-value methodology is a book-value approach and may differ from a fair-market-value appraisal.

3 Years

Bond Valid For

Per ARS § 28-2057(D), the bond and any accompanying cash deposit 'shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.' Early release therefore requires both deregistration of the vehicle in Arizona and physical surrender of the certificate of title to MVD.

$4.00

Title Fee

ARS § 28-2003(A)(1) sets the fee for 'each certificate of title' at $4. The ADOT vehicle title page confirms '$4.00' as the standard title fee. This is the standard certificate of title fee applied to bonded titles; no separate bonded-title-specific surcharge is identified in a primary source. For mobile homes, ARS § 28-2003(A)(2) sets the title fee at $7 per section. An MVR search costs $3 per request per Form 40-1001. Arizona vehicle use tax (transaction privilege tax) may apply to the underlying vehicle transaction but is not specifically tied to the bonded title process in any primary source reviewed.

Not Publicly Confirmed

Processing Time

Neither the ADOT Bonded Title page nor either application form specifies an agency processing timeline. The only time constraint identified in a primary source is an applicant deadline: Form 40-1001 (rev. 07/2025) warns that 'penalty fees will be charged if the bond is not submitted within 30 days from the purchase date,' meaning applicants must return to MVD with the purchased bond within 30 days of buying it. No official estimate of the time MVD takes to issue the bonded title could be confirmed from a primary source.

What Is a Bonded Title?

A bonded title (also called a surety bond title or certificate of title with bond) is issued when you possess a vehicle but cannot prove complete, unbroken ownership history through traditional documentation such as a signed title, bill of sale, or inheritance records.

The surety bond protects any previous owner who might later make a valid claim to the vehicle. If a prior owner appears and can prove their ownership during the 3 Years bond period, the bond pays their claim. After the bond period expires with no claims, Arizona will issue you a clean, unbranded title.

Who Issues the Bond in Arizona?

Licensed surety company or cash deposit with MVD

ARS § 28-2057(B) authorizes two alternatives: the applicant may 'either accompany [the bond] with the deposit of cash or have a person authorized to conduct a surety business in this state also execute the bond.' Either form of bond must indemnify prior owners, lienholders, subsequent purchasers, and persons acquiring a security interest, including reasonable attorney fees. Form 40-1001 (rev. 07/2025) instructs applicants to purchase the surety bond last — after all other steps are complete — and warns that 'penalty fees will be charged if the bond is not submitted within 30 days from the purchase date.'

Search for "Licensed surety company or cash deposit with MVD" in Arizona to find authorized insurers. National companies like Western Surety, Lexon Insurance, and IndemniCo are commonly used. Premiums are typically 1–3% of the bond amount annually.

Required Documents in Arizona

Form 40-1001 (rev. 07/2025) explicitly requires a physical VIN inspection completed by 'a certified inspector at an MVD office, Authorized Third Party, or Law Enforcement agency' before any other step proceeds. The owner-and-lienholder notification step is mandatory: if a lienholder is on file and does not provide a lien release or proof of going out of business, the bond process stops and becomes a judicial matter. Notarization of the applicant affidavit is not mentioned on Form 40-1001 or the official ADOT page; the form requires only the applicant's signature witnessed at the time of bond submission. Mobile homes require an additional County Assessor validation step not required for vehicles or trailers.

1Bond Title Application – Vehicles and Trailers (Form 40-1001, rev. 07/2025) — completed in stages at MVD

2Title and Registration Application (Form 96-0236, rev. 03/2026)

3VIN inspection completed by a certified inspector at an MVD office, Authorized Third Party, or Law Enforcement agency

4Motor Vehicle Record (MVR) documenting owner and lienholder search results ($3 per MVR request)

5Lien release or proof lienholder is out of business (if a lienholder is found on record)

6For out-of-state records: documentation of the out-of-state MVR response

7Surety bond or cash deposit in the amount set by MVD (1.5× AAMVA/NVITIS-verified average value)

8For mobile homes only (Form 40-1003): Property Tax Clearance from County Treasurer and market value certification from County Assessor (County Assessor validation stamp required)

Application Form

Form 40-1001 (Bond Title Application — Vehicles and Trailers, rev. 07/2025); Form 40-1003 (Bond Title Application — Mobile Homes, rev. 07/2025); Form 96-0236 (Title and Registration Application, rev. 03/2026)

Forms 40-1001 and 40-1003 are the dedicated bond title application forms, both revised July 2025, available at apps.azdot.gov and from any MVD office or Authorized Third Party. Form 96-0236 (the general Title and Registration Application) is also required to complete the title transfer. The bond application forms are multi-step: the vehicle inspection section is completed by the inspector, the affidavit and owner/lienholder notification sections are completed before purchasing the bond, and the final signature is witnessed at MVD when the bond is submitted.

When Does the Bond Release?

After 3 Years — Clean Title

ARS § 28-2057(D) governs release: the bond and any cash deposit 'shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.' Any interested person — a prior owner, lienholder, or subsequent purchaser — may sue to recover on the bond under ARS § 28-2057(C); the surety's aggregate liability to all claimants cannot exceed the face amount of the bond.

Arizona-Specific Note

Arizona is one of a smaller group of states that expressly authorizes a cash deposit with the state as a direct alternative to a licensed surety bond (ARS § 28-2057(B)), giving applicants two legally equivalent paths. A distinctive feature of the Arizona process is the mandatory owner-and-lienholder notification step: if the MVR search reveals a lienholder and the applicant cannot obtain a lien release or proof that the lienholder is out of business, the bond process stops entirely and the matter must be resolved through court — there is no administrative workaround. Mobile home bonded titles carry an additional requirement not shared by vehicle titles: the County Assessor must validate the market value with a stamp, and a property tax clearance from the County Treasurer is required before the bond can be set. Note that ARS § 28-2057 references only 'vehicle' — the extension of the bonded title process to mobile homes is established by agency practice (Form 40-1003 and the ADOT Bonded Title page) rather than by the statute's own text. ARS § 28-2057 does not describe any visual marking or notation of 'bonded' on the issued certificate of title; whether Arizona marks issued titles as bonded could not be confirmed from a primary source.

Bonded Title FAQ — Arizona

What is a bonded title in Arizona?

A bonded title in Arizona is a certificate of title issued when you cannot prove complete ownership history through standard documentation. You purchase a surety bond (1.5× the value of the vehicle as determined by MVD) and the state issues a title branded "BONDED." After 3 Years with no adverse claims from prior owners, the bond is released and you can get a clean title.

How much does a bonded title cost in Arizona?

In Arizona, the title fee is $4.00. The surety bond premium — purchased separately from a licensed insurer — is typically 1–3% of the bond amount per year. For a $10,000 vehicle, the bond amount would be approximately $15,000 and the annual premium would be $150–$450.

Can I sell a bonded title vehicle in Arizona?

Yes, you can sell a vehicle with a bonded title in Arizona. However, buyers will see the "BONDED" brand on the title and may be unwilling to pay full market value. Full disclosure to the buyer is required. After 3 Years without adverse claims, you or the buyer can apply for a clean title.

How long does a bonded title last in Arizona?

A bonded title in Arizona is valid for 3 Years. ARS § 28-2057(D) governs release: the bond and any cash deposit 'shall be returned at the end of three years or prior to the end of three years if the vehicle is no longer registered in this state and the currently valid certificate of title is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.' Any interested person — a prior owner, lienholder, or subsequent purchaser — may sue to recover on the bond under ARS § 28-2057(C); the surety's aggregate liability to all claimants cannot exceed the face amount of the bond.

Apply Through

Arizona Motor Vehicle Division (MVD), Arizona Department of Transportation (ADOT)

https://www.azdot.gov/mvd/services/vehicle-services/title-and-registration/bonded-title